Unaudited interim results

30 September 2016, 08:28

Source - PRN

WMC Retail Partners plc("WMC" or "the Company")

Unaudited interim results for the six months ended 30 June 2016

I welcome the opportunity given by this Interim Report to update shareholders on both our progress and some potentially significant and exciting developments at our Cornish Market World site. Firstly dealing with our half-yearly results themselves for the six months to June 30th 2016, unaudited figures show a not unexpected loss of £78,000 – a major improvement on the £226,000 loss for the same period last year, even though £42,000 of the improvement relates to the release of earlier provisions. Once again our traditional markets broadly held their own in a difficult trading environment with occupancy slightly up on last year. Our move into apprenticeship training has proved disappointingly slow, primarily due to bureaucratic red tape beyond our control. However our Consulting activities, ably led by Executive Director Andrew Sparrow, have made notable progress with this company being appointed for new projects in, amongst others, Manchester, Chester, Wood Green and Swindon. Pleasingly, in some cases, what started as time limited projects have now developed into either extended pieces of work, or discussions regarding retaining WMC’s involvement over the lifespan of the development project. These projects see WMC advising on a broad range of issues including market relocations, internal design, retail mix, events strategies and estate management protocols.

Turning to Cornish Market World ("CMW"), shareholders will be aware that this has been loss-making for a number of years - a real drag on overall group results. Unfortunately the market never really recovered from being severely flooded in 2010 and despite our considerable success in building up the adjacent “Kidzworld” Activity Centre, overall results continue negatively although there has been a distinct improvement in market occupancy and optimism.

In my last Chairman’s report I referred to our continuing dialogue with our landlord, the Council, and prospective tenants to deliver a more profitable and certain future at CMW. I am now pleased to report that we are close to signing a new agreement on more acceptable and certain terms. A further announcement will be made when this has been completed.

Finally I would like to report to shareholders that Paul Fice, our former Company Secretary and Finance Manager, retired in July after many years of loyal service. I would like to thank Paul for all he did for us and to wish him well in his new business venture. We welcome Ken Riley as his replacement. Ken has settled in well and his wide previous commercial experience should be a very considerable benefit to us as we embark on our new exciting developments.

Lord Lee of Trafford DL FCA

Chairman

CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six months

Six months

Year to

ended

ended

31

30 June

30 June

December

2016

2015

2015

Unaudited

Unaudited

Audited

£'000

£'000

£'000

Turnover

2,048

2,149

4,307

Cost of sales

(1,687)

(1,898)

(3,516)

Gross profit

361

251

791

Administration expenses

(370)

(388)

(644)

Operating (loss)/profit

(9)

(137)

147

(Loss)/profit on sale of business and fixed assets

0

(15)

12

Interest receivable

0

1

1

Interest payable

(69)

(75)

(147)

(Loss)/profit on ordinary activities before taxation

(78)

(226)

13

Tax on (loss)/profit on ordinary activities

4

45

(1)

(Loss)/profit on ordinary activities after taxation

(74)

(181)

12

Minority interest

4

3

15

(Loss)/profit for the financial period

(70)

(178)

27

Basic (loss)/earnings per share in pence

(1.2)

(3.0)

0.45

30 June

30 June

31 December

2016

2015

2015

Unaudited

Unaudited

Audited

£'000

£'000

£'000

Fixed assets

Intangible

- positive goodwill and other intangible assets

149

119

157

Tangible assets

7,470

7,889

7,521

7,619

8,008

7,678

Current assets

Stocks

9

8

7

Debtors: amounts falling due within one year

847

751

528

Debtors: amounts falling due after one year

-

-

-

Cash at bank and in hand

26

34

196

882

793

731

Creditors: amounts falling due within one year

(1,041)

(1,588)

(1,080)

Net current liabilities

(159)

(795)

(349)

Total assets less current liabilities

7,460

7,213

7,329

Creditors: amounts falling due after more than one year

(3,769)

(3,422)

(3,330)

Provisions for liabilities and charges

(189)

(186)

(422)

Net assets

3,502

3,605

3,577

Capital and reserves

Called up share capital

3,000

3,000

3,000

Share premium account

250

250

250

Revaluation reserve

386

1,072

388

Share based payment reserve

82

79

82

Profit and loss account

(235)

(827)

(165)

Equity shareholders' funds

3,483

3,574

3,555

Equity minority interest

19

31

22

Total shareholders' funds

3,502

3,605

3,577

Notes to the Interim Results

1 Accounting policies

The interim results have been prepared on the same basis and using the same accounting policies as those used in the preparation of the statutory accounts for the year ended 31 December 2015.

2 Going concern

In common with the majority of other companies, the current economic conditions create uncertainty.

The Group is funded by cash reserves and bank loans, which have been substantially reduced over the past couple of years, primarily through property sales. The loan is currently in negotiation for renewal and extension with business plans and cashflow forecasts until 2020. For this reason, the directors continue to prepare the financial statements on a going concern basis.

3 Earnings per share

The calculation of earnings per share is based on the result for the period divided by the weighted average number of shares in issue, being 5,999,449 (30 June 2015: 5,999,449 and 31 December 2015: 5,999,449) ordinary shares of 50p each.

4 Interim dividend

The Directors have declared no interim ordinary dividend (2015: Nil) per share. A preference dividend of 1.5875p per share was paid on 1 July 2016.

5 Accounting

The results for the half year ended 30 June 2015 and 2016 are unaudited and do not constitute statutory accounts within the meaning of section 434 Companies Act 2006.

The financial information for the period ended 31 December 2015 has been extracted from the statutory accounts for that year which have been filed with the Registrar of Companies and the auditors have given an unqualified audit opinion.

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